Shiba Inu (SHIB) is currently positioned in a technical setup that traders often refer to as a "free move," suggesting a potential 8-10% price surge could be imminent. The meme coin is compressed in a tightening range between an ascending trendline providing support below and the 50-day Exponential Moving Average (EMA) acting as overhead resistance.
Despite trading within a broader downtrend and remaining below both the 100 and 200 EMAs, SHIB has shown resilience by forming a series of higher lows along the rising trendline. This price action has created a visible compression zone where sellers have failed to push the asset to new lows, while buyers have repeatedly tested the 50 EMA resistance. This structure indicates building pressure rather than dissipation, making a sideways resolution unlikely to persist for long under current conditions.
The primary trigger for a potential breakout is the 50 EMA. A clear break above this level could open the door to an 8-10% upside move. Analysts emphasize this potential spike is not driven by a fundamental shift in SHIB's strength or broader market narrative, but rather by the lack of immediate structural resistance above the 50 EMA. Such a move would be mechanical, fueled by momentum traders entering late and forcing short-term sellers positioned at the 50 EMA to unwind their exposure.
However, significant resistance awaits at the 100 EMA, which has historically capped SHIB's price advances multiple times and aligns with the larger downtrend structure. Even if SHIB successfully breaks the 50 EMA and rallies, the 100 EMA is expected to act as a formidable wall, making a smooth continuation beyond it unlikely without a significant change in broader market conditions.
Supporting this technical interpretation, momentum indicators like the Relative Strength Index (RSI) remain neutral, allowing room for upside without immediate fatigue, while trading volume has stayed subdued—typical behavior preceding volatility expansion phases.
